Saudi Arabia’s Arabian Drilling Company (ADC) has shown interest in purchasing Dalma Energy, in a deal which could value the land rig operator at more than $500m, Ecofin Agency Oil and Gas reported.
ADC is interested in Dalma’s assets, including those in Saudi Arabia, Oman and Algeria, according to Gulf Digital News. Initial deal talks began a few months ago and the potential transaction is in the due diligence stage, with US investment bank Goldman Sachs hired to arrange the sale. The agreement is expected to close by the end of October.
Dalma Energy is owned by a consortium of investors through Saudi-based Al Qahtani Investments and was ranked the third-largest owner of land rigs in the Middle East and North Africa region. The company owns and operates 31 land rigs all through the Gulf, Asia and Africa, with 2 in Algeria, 20 in Oman and 9 in Saudi Arabia. Its clients include BP, Saudi Aramco and DNO Oman.